Most small businesses still need banks. They provide valuable financial services daily for businesses. Banks can still be a major source of capital for the promising business.
Get your business in bed with your bank! While this many do not highlight a nice image, it must be part of your strategy. Getting the bank to know the company’s capital requirements must be established far in advance when you need them. Here’s what to do and why it works:
Open checks and money market accounts at the bank. Use their merchant, ACH and wire services. Pay a fee to use their services.
Why it works: Banker is trained to help clients and you want to be part of this group as soon as possible.
Get a look at the bank and get to know the department head and key staff. Visit at least a couple of times a month. Talk to them about the bank, their family and your business.
Why it works: People do business with other people they know, like and trust.
Go to the events that banks sponsor locally. Show support for your causes. Join joint committees.
Why it works: You can demonstrate what it’s like to work with you and share a common goal.
Sit down with loan officers before capital is needed. Show them your sales and profit forecasts. Impress them with your knowledge of accounting. Revisit them as you progress toward your goals.
Why it works: Numbers are power. They are easy to take to a loan selection. Bankers trust business people who understand them.
This can be a home equity loan (or similar secured asset) to be used by your company. Pay back the loan on time and try to increase it.
Why it works: This builds a reputable track record that the bank can refer to.
Bankers like numbers that are increasing.
Why it works: A high credit score will show that you can count on borrowing money. They believe that past results predict the future.
Everyone loves referrals. Be responsible for helping the bank grow its business.
Why it works: If you help them, they are more likely to help you.
It’s time to apply for bigger loans for your business. This can be a term note or line of credit.
Why it works: Because the bank trusts you and your business.
How do you have a banker in bed with you to get a loan?
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